Foreign-trade zones of the United States

The purpose of such zones is to help American businesses to be competitive in the global economy by reducing tariff burdens on the importation of foreign inputs and on exported finished products.

[1] Another definition of an FTZ states that it is an isolated, enclosed and policed area operated as a public utility, furnished with facilities for loading, unloading, handling, storing, manipulating, manufacturing and exhibiting goods and for reshipping them by land, water or air.

Ports of Entry and are under the supervision of the U.S. Customs and Border Protection under the United States Homeland Security Council.

The Foreign-Trade Zones Act was one of two key pieces of legislation passed in 1934 in an attempt to mitigate some of the destructive effects of the Smoot-Hawley Tariffs, which had been imposed in 1930.

Inverted tariff is seen predominantly in the manufacturing industry, benefiting automotive, petroleum, pharmaceutical, aerospace, electronics, textile companies and many more.

It is a way to reduce importing costs and save money by participating in special customs procedures and simplifies processes to run more efficient inventory control systems.

Alternative Site Framework (ASF) provides a streamlined process for foreign-trade zone grantees to quickly expand operations within their given service area.

Grantees that have transitioned over to ASF are granted 2,000 "virtual" acres to designate sites within their service area, sometimes as quickly as thirty (30) days.

Under ASF, magnet sites replace the role that general purpose zones once held – industrial parks that serve commerce as a public utility.